BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1153
                                                                  Page  1

          Date of Hearing:   January 23, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 1153 (Eggman) - As Amended:  January 6, 2014 

          Policy Committee:                              Business,  
          Professions and Consumer Protection           Vote: 14-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill authorizes the Board of Barbering and Cosmetology  
          (BBC) to offer a master esthetician skin care license,  
          establishes the educational and practical requirements for the  
          master esthetician examination application, and modifies the  
          scope of practice of cosmetology and esthetic skin care,  
          including changes to account for current technological and  
          industry advances in skin care practice.

           FISCAL EFFECT  

          Start-up costs substantially offset by exam fees earned  
          following license establishment; ongoing exam costs and expert  
          examiner costs fully offset by exam fees; potential one-time  
          increase in licensing fee revenues from applicants in the first  
          year of license availability.

          1) Costs.  

             a)   Initial estimated start-up costs to establish the master  
               esthetician license type consist of approximately $20,000  
               in IT costs, $100,000 to develop and implement the master  
               esthetician exam, and $60,000 per year during the first two  
               years to employ additional staff to handle implementation  
               and the expected high volume of initial applicants.   
               Following the initial two-year period, the additional  
               workload associated with the master esthetician license  
               will be absorbable by the BBC. 

             b)   Ongoing expenses for administering exams consist of a  
               $30 cost per exam to the exam developer and approximately  








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               $220 per examiner per day for expert examiners on days  
               where exams are administered.  Approximately 20% of current  
               licensed estheticians are expected to apply for master  
               esthetician licenses once available, and approximately 3%  
               of licensed estheticians are expected to apply each year  
               thereafter. 

                  Based on the above costs and assumptions and a current  
               population of about 65,000 licensed estheticians, in the  
               initial year of availability, exam costs and expert  
               examiner costs are expected to be approximately $460,000.   
               On an ongoing basis, those costs are expected to be  
               approximately $60,000 per year.

             c)   The bill may also result in absorbable enforcement  
               costs.



          2)  Revenues.
           
             a)   Exam fees will offset substantially all of the initial  
               start-up costs, including the cost to the BBC for  
               developing, purchasing, grading, and administering the  
               exam, and will offset all of the ongoing costs of  
               administering exams.

             b)   License fees are limited to a biannual fee of $40,  
               equivalent to that of the current esthetician license.  In  
               the first year of availability, license fees received from  
               applicants for master esthetician licenses who are "off  
               cycle" (i.e. had paid a license fee the previous year and  
               would not otherwise need to renew their license) would  
               result in a one-time increase in license fee revenues.  If  
               half of all initial applicants were "off cycle" in this  
               manner, the one-time increase in license fee revenue would  
               be approximately $225,000.  On an ongoing basis, the  
               equivalent $40 license fee would not result in increased  
               revenues compared with the current esthetician license  
               fees.

           COMMENTS  

          1)  Purpose.   The author contends AB 1153 addresses an industry  
            request for more advanced and specialized training and  








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            licensure for estheticians.  The additional education is  
            intended to train master estheticians in advanced treatments,  
            safety judgments, and other enhanced service competencies.   
            Compared with a current esthetician, who is limited to  
            performing treatments to the head and neck area only, a master  
            esthetician will be allowed to perform additional defined skin  
            procedures, including certain extractions, over the entire  
            body. 

            Obtaining a master esthetician license will require most  
            applicants to either complete an additional 600 hours of  
            training over the 600 hours required for the current  
            esthetician license or hold a national or international  
            certification in advanced esthetics that is recognized by the  
            BBC.  Certain estheticians who are currently licensed and have  
            practiced for a sufficient period of time will be able to  
            apply for the master esthetician license without having  
            completed the additional training or certification, subject to  
            passing the examination and, in certain cases, completing  
            certain continuing education approved by the BBC.

          2)  Opposition.   The California Society of Dermatology &  
            Dermatologic Surgery (CalDerm) states certain cosmetic  
            practices defined and described in the bill were not  
            sufficiently distinguished from similar medical practices,  
            particularly with respect to extractions.  CalDerm has  
            indicated it would support the measure if amended to better  
            define the limits of those cosmetic practices.

          3)  The skincare industry.   According to the Bureau of Labor  
            Statistics, the employment of skincare professionals is  
            expected to grow 25 percent from 2010 to 2020, faster than the  
            average for all other occupations.
           
           4)  Similar licensing programs.   Currently, Utah and Virginia  
            offer two-tier master esthetician licensing programs requiring  
            1200 hours of study, similar to the provisions of this bill.

            BBC does not currently offer any form of master license to any  
            of its existing license programs. 

           Analysis Prepared by  :    Joel Tashjian / APPR. / (916) 319-2081 











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